Linda Sánchez and Tom Reed Introduce Energy Efficiency Tax Credit

Posted by on Tue, Jul 25, 2017 @ 11:07 AM

Washington, D.C. – House Democratic Caucus Vice Chair Linda Sánchez (CA-38) and U.S. Congressman Tom Reed (NY-23), both members of the Ways and Means Committee, today introduced bipartisan legislation to create jobs and promote energy efficiency.  The Mechanical Insulation Installation Incentive Act of 2017 would significantly reduce U.S. energy consumption by improving energy efficiency.

 

“Improving industrial and commercial energy efficiency has been a priority for many years, but unfortunately mechanical insulation has been largely overlooked,” said Rep. Linda Sánchez. “It is a vital component in constructing and maintaining high-performance, energy-efficient buildings and protect our environment. This bill would encourage more manufacturing facilities, office buildings, schools, hospitals, power plants, hotels, and universities to invest in improving the energy efficiency of their buildings and machinery. I’m proud to join with Rep. Tom Reed to introduce this important bipartisan legislation.”

 

“This tax credit encourages businesses to become more energy efficient,” Rep. Tom Reed said. “Not only does this help the environment, but it frees up money that otherwise would be spent on energy bills. Now these companies can use those dollars to hire more workers. I am happy to work across the aisle with Rep. Sánchez on this bill to make sure we incentivize job creation and get more people back to work.”

 

Industry estimates show that this legislation would provide more than $4 billion in energy savings, help reduce approximately 40 million metric tons of carbon dioxide and other greenhouse gas emissions, and create nearly 90,000 jobs annually.

 

International Association of Heat and Frost Insulators and Allied Workers General President James McCourt said, "On behalf of our skilled Insulator members, I want to thank Congresswoman Sanchez, and Congressman Reed for their leadership to introduce this important energy efficiency tax incentive legislation.  These congressional leaders understand the value of mechanical insulation that generates significant energy, economic and environmental benefits for our nation.  For more than 100 years, we have been the original green energy workers, and this legislation recognizes that our tax code should encourage building and facility owners to make the right investments to make their commercial buildings and industrial facilities more energy efficient."

 

National Union Insulation Contractor Association Executive Director Alec Rexroat said, "I am delighted that we have strong bipartisan support for mechanical insulation from these distinguished lawmakers who appreciate the work of union insulation contractors and the Insulator members we employ.   Comprehensive energy tax policy has to include mechanical insulation, and the outstanding leadership of these bill sponsors demonstrates how Congress is supposed to work: crafting bipartisan legislation that will create jobs, promote energy security and reduce greenhouse gas emissions."

 

Mechanical insulation is a proven technology that would drastically cut energy consumption and greenhouse gas emissions in commercial buildings, but it is cost prohibitive for many employers.  This bill would give employers a tax incentive for installation costs of mechanical insulation in commercial or industrial buildings.  The building owner would receive a 30 percent tax credit in the fiscal year in which the mechanical insulation was put in service or maintenance completed.  The tax credit would be available for five years, giving ample time to implement the necessary installation. 

 

Mechanical insulation encompasses all thermal, acoustical and personal safety requirements for mechanical piping and equipment, as well as Heating, Ventilating and Air Condition (HVAC) applications.  The system is used across a wide platform of commercial and industrial buildings to decrease heating and cooling costs while increasing efficiency.

 

To show your support to your elected officials, we have created a customizable support letter we that encourage you to use. 

For questions, contact Chip Gardiner, Insulators Director of Government Affairs, at cgardiner@insulators.org

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